Snap Shares Fall More Than 10% After Third-Quarter Revenue and User Misses

Snap shares fell more than 10% Wednesday after third-quarter revenue and global daily active users missed expectations, putting a spotlight on pressure in the digital advertising market.

Revenue came in at $1.72 billion, compared with a $1.73 billion estimate. Global daily active users totaled 495 million, below an estimate of 499 million.

Adjusted earnings reached $383 million, topping the $337 million estimate. Revenue grew 14% from a year earlier, and net income was $56 million, compared with a $104 million loss a year earlier.

Snap forecast fourth-quarter revenue of $1.95 billion to $1.99 billion, putting the midpoint above the $1.95 billion estimate. It projected adjusted earnings of $490 million to $525 million, compared with a $498 million estimate.

Chief Commercial Officer Ronan Harris said lower spending among consumer packaged-goods advertisers affected sales, citing economic pressures in the United States and the Middle East. He also pointed to financial services in the United States as an area showing positive growth signs as Snap seeks traction beyond consumer packaged goods.

Snap reported 977 million global monthly active users for the quarter. It plans to make that its primary audience metric beginning in the first quarter of 2027.